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by cush 381 days ago
> You can't compare an API that is profitable (search) to an API that is likely a loss-leader to grab market share (hosted LLM cloud models).

Regardless of maturity lifecycle, by definition loss-leaders are cheap. If I go to the grocery store and milk is $1, I don't think I'm being swindled. I know it's a loss-leader and I buy it because it's cheap.

We are currently in the early-Netflix-massive-library-for-five-dollars-a-month era of LLMs and I'm here for it. Take all you can grab right now because prices will 100x over the next two years.

1 comments

Want to bet? I'll give you 5:1 odds that tokens from a model with some specific benchmark performance (we can sort out the specific benchmarks or basket of benchmarks if you want to bet) will be cheaper two years from now.
Sure. To clarify, I'm not asserting that in two years today's 4o will be 100x more expensive, but the sum of many core offerings from various companies will be. It won't be unheard of for people to spend $2k-$10k/yr between many AI services
It's not unheard of for people to spend $13,000 on a pure silver frying pan. Is it common? No.
Like say 10% of people or more
I misunderstood your comment then, my assertion is that models which have the same capabilities as current models will be cheaper in the future. I have no doubts that models with more capabilities will be more expensive.